Peggy Murrietta, Realtor
SHORT SALE TEAM SPECIALIST-Preventing Foreclosure is our Goal
Cell: (602) 402-1617    Fax: (480) 502-5359
SCOTTSDALE SHORT SALE SPECIALISTS. Our team of real estate experts, attorneys and bank negotiators ensure your experience is smooth and expertly handled.
Specializing in SHORT SALES
 of Real Estate in Scottsdale, Paradise Valley and Cave Creek
Multi-Million Dollar Producer of fine, upscale properties. 
Expert Negotiations. 
Certified Distressed Property Expert
Short Sales: It is a sign of the times and short sales are not going away soon.

Check out these Myths and the FACTS:
Myth:   You must stop making mortgage payments before the bank will approve a short sale.
TRUTH:   You do not have to stop making payments on your home in order for the bank to approve a short sale. What the bank needs to see is a solid reason why you are unable to continue making your monthly payments and must sell, for instance loss of job, relocation, divorce. Due to the current market conditions, the banks generally understand why the short payoff is being requested – whether you have missed a payment or not.
Myth:   Your credit will go down hundreds of points as a result of a short sale!
TRUTH:   You will only receive a 35 point ding to your credit with many short sales.

Myth:   You cannot buy another home with a loan for 3 years.
TRUTH:   In many cases, you can get another loan within 30 days of short selling your property.

Myth:   I have a second mortgage or home equity line so I can’t do a short sale on my home.
TRUTH:   The majority of people we work with have both a first and second or home equity line. In this situation, the first mortgage generally approves an amount for the second and we negotiate between the two. The second mortgage company is accustomed to taking a much lower payoff.

Myth:   The bank will not pay the commission for my real estate agent and/or thecosts of listing the property with a real estate agent will be passed on to me.
TRUTH:   A real estate agents commission is taken out of the banks proceeds at close of
escrow. There should never be an out of pocket expense for a seller who lists
their home as a short sale with a real estate agent.

Myth: I have a foreclosure date approaching so there is not enough time to do a short sale.
TRUTH:   Because it is generally far more expensive for the bank to foreclosure on your home than to work with us on a short sale, we can postpone the sale on your home in most cases while we are marketing and/or negotiating your short sale.

One HUGE reason to act NOW:
The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence and that act ends on December 31,2012. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.
Consult your tax professional regarding the Mortgage Debt Relief Act and how it may apply to you and your financial situation.
We never charge an upfront fee-you retain full control over your home.

How much does it cost?
It costs absolutely nothing to the homeowner. We are paid directly by the lender and only upon closing the transaction.

We have the facts about Short Sales. With our attorney partners, we are aware of the most current laws that many banks are still unaware of!  Call us today at (602) 402-1617 for a free consultation with our Attorney backed negotiator for help and advice with the sale of your property.

When you work with our team, you are working with an ally that is dedicated to helping you with all of your real estate needs. We have successfully closed over 200 short sales and have the expertise and knowledge necessary to assist our clients in choosing the best possible solution.

We know laws, loopholes, deficiency information, mortgage laws, investor requirements, and other important facts that can help you avoid foreclosure, reduce the impact to your credit and potentially save you thousands of dollars!   We understand the integral process of the short sale – from initial pricing to successfully closing your short sale. We understand that a short sale can be confusing. If you have questions or concerns about the short sale process, we would love the opportunity to assist you.  Email us at

We will handle every detail of the short sale transaction – from securing a buyer to negotiating with your lender for anti-deficiency, to facilitating the closing. By utilizing the assistance of a professional short sale negotiator and a real estate agent who is an expert at pricing, marketing, and closing your short sale we are able to successfully complete your sale quickly and with minimal impact to your credit.

Regardless of what anyone may tell you, a foreclosure, short sale, loan modification or deed-in-lieu of foreclosure can all have a negative impact on your credit. There is, however, a difference in the severity of the damage between them...

The difference between a foreclosure and a short sale can be huge. A foreclosure will show on your credit as a foreclosure/repossession, whereas a short sale will show as pre-foreclosure in redemption status, settled or even as a completely satisfied account. A foreclosure can prevent you from purchasing a home for 5-7 years whereas a short sale for 6 months to 2 years – which means you can purchase a home much sooner. 

Foreclosures can also have a negative impact on credit card rates and limits, current or future employment and other areas of your life. Foreclosures generally have a more severe impact on your FICO score. Due to the high number of missed payments many people accrue over the course of their foreclosure, most people report a drop of 200-300 points in their score. If you are proactive about short selling your home, you can reduce this reduction significantly.

The short sale process is far more discrete than a foreclosure. Your friends, family and neighbors do not need to know you are doing a short sale on your property and your property will be marketed like any other home for sale. When the property closes escrow, you will move out and move on with your life. When your home is facing foreclosure, the bank generally posts a notice of trustee sale on your property. If the property does go to foreclosure and you or a tenant is living in the home there will be an eviction process followed by a listing – where it is generally marketed as a bank owned or foreclosure property.

A short sale allows you to get out of a home that is causing you a financial hardship and rid you of the debt associated with negative equity without facing foreclosure. We highly recommend that if you are considering a short sale you meet with a professional as soon as possible to reduce the impact on your credit and begin the negotiations with your lender. Best Wishes!

Is Cancellation of Debt income always taxable?
Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve:

Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to most homeowners.  The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence indebtedness. The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing separately.

If the forgiven debt is excluded from income, do I have to report it on my tax return?
Yes. The amount of debt forgiven must be reported on Form 982 and this form must be attached to your tax return.

Consult your tax professional regarding the effects of a Short Sale to your tax liability.

Here is a list of some of the Lenders that HomeSalesScottsdale has successfully negotiated Short Sales with:
~ Bank of America
~ Wells Fargo
~ Green Tree
~ Chase Bank
~ Aurora
~ Bank United
~ Indy Mac
Forget those other websites that have outdated information. Search the very same MLS we use to do research on home sales and availabilities. Enjoy...

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HomeSmart International
10601 North Hayden Road I-100 • Scottsdale, AZ 85260
Cell: (602) 402-1617 • Fax: (480) 502-5359

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